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Lobby group the Confederation of British Industry (CBI) is urging Chancellor George Osborne to make cuts to the public sector rather than increasing the tax burden on its members.

In a letter to the Chancellor ahead of the emergency Budget the business group calls for major reform of the public sector to create savings to help reduce the UK's massive deficit rather than increasing taxes.

The group wants £4 in spending cuts for every £1 in extra taxes. It suggests three main ways to create these cuts: